Tech rally elevates Nasdaq to record high close

By Noel Randewich (Reuters) - The Nasdaq surged to a record high close on Monday, while the S&P 500 approached its own record level, with both indexes lifted by Nvidia and other technology stocks. The benchmark S&P 500 was just shy of its Feb. 19 intraday record high after testing that level for much of last week, while the Dow Jones was weighed down by losses in financial and industrial stocks.

Reuters August 18, 2020 02:05:32 IST
Tech rally elevates Nasdaq to record high close

Tech rally elevates Nasdaq to record high close

By Noel Randewich

(Reuters) - The Nasdaq surged to a record high close on Monday, while the S&P 500 approached its own record level, with both indexes lifted by Nvidia and other technology stocks.

The benchmark S&P 500 <.SPX> was just shy of its Feb. 19 intraday record high after testing that level for much of last week, while the Dow Jones <.DJI> was weighed down by losses in financial and industrial stocks.

Nvidia Corp was among the top boosts to the S&P 500 and Nasdaq for the day, surging to a record high after two analysts raised their price targets ahead of the chipmaker's quarterly results on Wednesday.

In June, the Nasdaq became the first of the major Wall Street indexes to recoup its coronavirus -induced losses as several of its largest constituents, including Amazon.com Inc and Netflix Inc , benefited from curbs on social activity.

"Tech is the only trade," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "Things that were 10 years away on Feb. 18 are here now: Distance learning, seeing your doctor via Zoom, ordering pharmaceuticals via the mail."

Lowe's Cos Inc and Home Depot Inc rose ahead of their earnings later in the week. The two home improvement chains are expected to have received a bump to their quarterly sales from consumers looking to do minor repair work while spending more time at home.

The S&P 500 retailing index <.SPXRT> climbed, with heavyweights Walmart Inc and Target Corp also set to report results this week.

"Earnings season in general has been much better than expected, but a big part of that is because the expectation has been so low," said Willie Delwiche, investment strategist at Baird in Milwaukee.

Rackspace Technology jumped after Reuters reported Amazon is in early talks to invest in the cloud services provider.

As of Friday, 457 companies in the S&P 500 had posted results, of which 81.4% came in above dramatically lowered expectations, according to Refinitiv data.

Minutes of the Federal Reserve's latest meeting, due on Wednesday, are expected to provide more insight into the central bank's view of an economic recovery, while housing starts data is also on tap.

Caution is expected to seep into markets ahead of the November U.S. presidential vote, as the election season kicks into higher gear with the Democratic National Convention, which runs Monday through Thursday.

Unofficially, the Dow Jones Industrial Average <.DJI> fell 0.31% to end at 27,845.45 points, while the S&P 500 <.SPX> gained 0.27% to 3,382.09. The Nasdaq Composite <.IXIC> climbed 1% to 11,129.73.

Most the 11 major S&P sectors rose, with technology <.SPLRCT> providing the biggest support to the S&P 500 index.

Principia Biopharma Inc surged to a record high after French healthcare firm Sanofi SA said it would buy the company for about $3.7 billion.

(Additional reporting by Ambar Warrick and Medha Singh in Bengaluru; Editing by Cynthia Osterman)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Greek police clash with protesters in rally against mandatory vaccinations
World

Greek police clash with protesters in rally against mandatory vaccinations

ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.

Two Turkish soldiers killed in attack in northern Syria
World

Two Turkish soldiers killed in attack in northern Syria

ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.

Brazilians take to streets again to demand Bolsonaro's impeachment
World

Brazilians take to streets again to demand Bolsonaro's impeachment

By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied